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Organizational Change. Innovation HAS TO HAPPEN. What happens if change is planned and no one wants to follow it?

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Presentation on theme: "Organizational Change. Innovation HAS TO HAPPEN. What happens if change is planned and no one wants to follow it?"— Presentation transcript:

1 Organizational Change

2 Innovation HAS TO HAPPEN. What happens if change is planned and no one wants to follow it?

3 Change Leaders What an organization needs are Change Leaders. These are people who are actually responsible for getting things done. Executives  Vice Presidents  Senior Level Managers  Middle Managers  Line Managers  Supervisors  Workers.

4 Change Leaders Change Leaders have to be open to new ideas and accept orders readily. Change Leaders ------------------------------- -Confident of Ability -Willing to take risks -Seizes opportunity -Expects surprise -Makes things happen Creativity and Innovation Status quo Managers ------------------------------- -Threatened by change -Bothered by uncertainty -Prefers predictability -Supports the status quo -Waits for things to happen Promotes and actively supports Avoids and even discourages

5 Models of Change Leadership Top-Down Change Senior Managers Organization Top Down Change

6 A lot of top down changes fail because there is no support. Everyone has to support it if plans are going to work. Further, it is not good enough to simply say that change is coming. Action has to be taken.

7 Models of Change Leadership Top-Down Change Senior Managers Organization Bottom-Up Change

8 This is change that comes from any part of the organization, not just top management. Could be small things, could be large change. Starts as suggestions, some lead to implementation.

9 Integrated Change Leadership This is using the best of both worlds. Jack Welch became the CEO of General Electric in 1981. Became known for major cuts and re-organization of the organizational structure.

10 Integrated Change Leadership THE TOP -Layoffs, -Workforce cuts and reorganization THE BOTTOM -Asking everyone for opinions on change -Suggestions for reassessment - “Town-Meetings.”

11 Transformational and Incremental Change Some changes are unplanned. Good managers look for opportunities. Reactive Change – Responds to events as or after they occur. Planned Change – Lines up with the plan that the organization made. Performance Gap

12 Transformational Change These are massive changes that change the shape of an organization.

13 Incremental Change The opposite of Transformational Change. Organizations work to improve existing systems and ways of doing things. They do not try to “reinvent the wheel.”

14 Forces and Targets for Change What are some external forces that can require companies and organizations to come up with changes? Either transformational or incremental.

15 Forces and Targets for Change Tasks – The nature of work (represented by the mission, objectives and strategy), job designs too. People – The attitudes and competencies of the employees and the Human Resource systems that support them. Culture – The value system of the company, and the norms that guide employee behaviour

16 Forces and Targets for Change Technology – The operations and information technology used to support job designs, arrange workflows, and integrate people and machines in systems. Structure – How the organization runs, lines of authority, communications, etc.

17 Leading Planned Change One of the hardest jobs a manager has to deal with, is preparing the employees for change. Humans like stability. We like habits. We like patterns and rhythms. Changes, big or small, stress a lot of people out. Managers, as change agents, need to be aware of this and deal with these problems.

18 Phases of Planned Change There are three phases. Try to think about your own lives while we go through this. The first is called Unfreezing. It is the period when a situation is prepared for change. You have to create a feeling that change is needed. If performance is dropping, or if people notice that there are problems or opportunities, it can be easier to fight resistance.

19 Phases of Planned Change The second phase is simply called changing. This is when the changes are made. Management identifies the new ways to behave, work, etc. Action is taken to put the changes into place in the areas chosen for change.

20 Phases of Planned Change The last phase is called refreezing. This is when the changes are stabilized. Employees have to be made to start accepting the changes. Support has to be provided so that employees can get used to the new ways of doing things. This is a good time for rewards based on performance, and positive reinforcement. It has to be done properly, or changes will be forgotten.

21 Apply this to you guys. Unfreezing – You get told/find out/ask to come to school in Canada. Have to prepare for a totally new experience. -Leaving what you know for something you don’t.

22 Apply this to you guys. Changing – You arrive. You have to adjust, figure out the rules, figure out the differences between what you are used to and the new situation. Figure out how to deal with everything at once.

23 Apply this to you guys. Refreezing – We try to provide resources for your success, policies for you to follow, rewards (and negative reinforcement) for certain behaviours, etc.

24 Change Strategies There are three main ways of getting people to do things differently. All have very different behaviours from you (the management) and all have the potential for very different consequences.

25 Force-Coercion This is when managers believe that people are motivated by self-interest. Change is pitched to these people by using rewards and punishments. Once weaknesses are found by management, they are used to put pressure on employess. 1. Forcing Strategy 2. Political Manouevering

26 Force Coercion Using this alone is not the best option. It produces limited lasting results. Best used as an “unfreezing device.” The behaviour you want only lasts as long as the rewards/punishments keep coming.

27 Rational Persuasion This method uses data and arguments that make sense to try to convince the employees that change is necessary. Can be used to unfreeze and refreeze. This works better than force-coercion because employees can see that change is needed and can see the benefits of the new system. An example of this would be sending employees to see another company in action to see how they do something.

28 Shared Power Strategies This is the most democratic of the three. Managers engage their employees to figure out what they think needs to be done. Power is shared to make the employees feel like they are part of the process. If they do things that they all decided on, they will feel good. A good feature of this system is that allows employees to be creative.

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